Despite global macro uncertainties, Irelands M&A (merger and acquisition) market is improving, with both buyers and sellers finding it easier to complete attractive deals in 2017. This increase is due to a number of factors: Improved banking environment, healthier companies and significant increase in additional funders coming on to the market. Below are a few tips to assist in maximising the outcome of any transactions in 2017.

1. Assemble your selling team – A lot of time and effort is required preparing a business for sale, conducting detailed review of market, pricing analysis and assessment of structuring and tactical issues. The time involved in the sale process must not distract staff from their normal course of business, as any deductions in financial performance may lead to a deduction in sales price.
2. Focus on Targets – Although this may seem like an obvious task, it is critical a business spends time analysing objectives prior to the sale. These may include considering whether you intend to sell the whole business or part of the business and if you and your senior staff are to remain in the business.
3. Working capital – Having a healthy working capital balance can lead to a significantly higher sale price.
4. Recurring profits – Profits can be adjusted for non - recurring expenditure and income. The deduction of items that are deemed to exceptional costs can lead to a higher profit and a higher price for the company.
5. Keep an eye on tax – Keep an eye on the ownership structure of the business well in advance of a sale to determine how the beneficiaries of the sale will be taxed. All potential tax reliefs should be investigated.
6. Stay focused – A large amount of time can be needed to maintain the momentum of a deal. It is fundamentally important that all work streams are managed until a deal is completed.

It is critically important to plan for any potential sale, ensuring the process is carried out in a professional and efficient manner in an appropriate timeframe.

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

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